Equities slipped again Friday as investors continued to see the market as due for consolidation, especially the big technology shares that have seen outsized gains this year. The Dow Jones industrial average lost 0.9 percent, the S&P 500 fell 0.7 percent and the Nasdaq declined 0.8 percent. Bond yields rose while the dollar slipped and oil prices dropped.

Global business disruptions caused by an IT outage gave traders another reason to sell tech stocks headed into the weekend, along with uncertainty over the U.S. political situation and the prospect that President Biden may not seek reelection after all. The market saw continued rotation into value/cyclical sectors and smaller cap shares and out of momentum and growth, especially hot artificial intelligence shares.

Among tech, CrowdStrike dropped 11 percent as its defective software update appeared behind the global outage. Chipmakers suffered, with Intel off 5.4 percent and Nvidia down 2.6 percent in the move out of semiconductors that have been lifted by AI enthusiasm.

Among sectors, communications services and health care outperformed. On the downside, worst hit were materials, financials, consumer discretionary, information technology and energy. Netflix rallied to lift communications after a bigger than expected increase in subscribers.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.